[Anonymous]

Hey guys, exam is coming up in a few days for me. I was wondering if anyone had a detailed list of allowable income and expense items for taxable estate income? Would things like bank charges, penalty and interest, withdrawals, savings account interest not included in prior year return, municipal bond interest, government bond interest, net short term gains and losses etc. be includable? I tried searching the IRC with no luck. Thanks in advance.

[Anonymous]

This is the best I've found: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Estate-Taxes#5 We were looking up estate tax information for a client today and I found that…which doesn't get nearly as specific as you're asking, but I just thought I'd pass on all I knew. 😛

Based on that, my interpretation would be that bank charges, penalties and interest, early withdrawal fees, etc., would all count, and that taxable vs untaxable income would otherwise be the same as an individual. However, this is without having even opened my REG book yet, and having not been looking up that topic specifically, so take this with a grain of salt!

[jeff]

NINJA Notes have the breakdown as well.

[Anonymous]

Thanks for the info guys, every little bit helps. Trying to figure out where these items would fall in the formula listed in the Ninja Notes.

[jeff]

Try not to overthink it … know what's on your ninja notes and move on … more important things to focus on.

[Author]

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